International Political Economy

International political economy (IPE) studies the interaction of states and markets in the global economy — trade, finance, development, and economic governance.

Scope

It covers the politics of international trade and finance, hegemony and cooperation, globalization, and the governance of the world economy.

Core questions

• How do politics and markets interact globally?
• How is cooperation sustained without a hegemon?
• Who governs the global economy?
• How does globalization reshape states and markets?

Key concepts

• Hegemonic stability
• International regimes
• Trade and finance politics
• Globalization
• States and markets
• Global economic governance

Key theories

Cooperation after hegemony

Keohane argued international regimes can sustain cooperation even as hegemony declines.

States and markets

Gilpin analysed the international economy through the lens of state power and political economy.

New trade theory

Krugman's work links economic geography and trade to IPE.

History

IPE developed from hegemonic-stability and regime theory (Keohane, Gilpin) into the study of globalization, financial governance, and the politics of the world economy.

Debates

Liberal cooperation versus realist power

Whether the global economy is governed by mutually beneficial regimes or by state power.

Key figures

• Robert Keohane
• Robert Gilpin
• Paul Krugman

Seminal works

• keohane-1984
• gilpin-1987
• krugman-1979

Frequently asked questions

What is hegemonic stability theory?

The idea that an open, stable international economy requires a dominant power (hegemon) to provide and enforce its rules.